United States of America v. Motion Picture Patents Company and others (1914)

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(2) Coaster Brake case: United States v. New Departure Mfg. Co., 204 Fed., 107; decision by District Judge Hazel. This was a combination of manufacturers of coaster brakes who had licenses with one of the defendants quite similar in character to the licenses here under consideration. The decision was on demurrer to the indictment. The court, after citing the Bath Tub case, the Bement case, National Harrow v. Heneh, 83 Fed., 36 (see our main brief p. 28) and Blount Mfg. Co. v. Yale & Towne, 166 Fed., 557, overruled the indictment, saying, page 114: (114:) So here, as claimed by the Government, the license agreements were resorted to as a subterfuge to aid in stifling competition in trade and commerce, and to enhance the value of the respective businesses of the defendant, and to create a monopoly in their productions. The court, referring to the Bement case, said (p. 113) : * * * the intimation in the opinion is clear that the monopoly secured to the patentee by the issuance of a patent can not be designedly used to form a combination or conspiracy between manufacturers and dealers to accomplish a restraint of trade such as the antitrust act prohibits. 79466—15 5